Virginia crossed a threshold in 2018: It was the first time people drove more miles on state roads and highways but gas tax revenues collected at the pump fell.
They were down $48 million, down from about $700 million collected annual gas tax revenues.
“That was the canary in the coal mine for what we’ll be facing,” said Virginia Transportation Secretary Shannon Valentine.
By 2030, those revenues are expected to drop 33% to below $500 million annually. The reason: more fuel-efficient cars are getting better gas mileage, prompting drivers to buy less gas.
On Wednesday, Valentine will present a report to Gov. Ralph S. Northam on ways to recoup that funding. One suggestion: look at hiking Virginia’s gas tax last increased in 2013, and index the tax to the rate of construction cost vs. the current cost of fuel.
That’s what the General Assembly did in 2013 when fuel prices averaged about $3 a gallon, said Valentine. It was the first time the state’s gas tax had been increased since 1986.
Virginia’s gas tax is 22 cents and ranks 12th lowest in the U.S. Alaska and Missouri have the lowest at 15 and 17 cents per gallon, respectively, while California ranks highest at 87 cents per gallon.
One possible funding solution: Tracking how far drivers travel in their cars and then tax them on the distance traveled vs. paying a gas tax at the pump. That would require some sort of attachable tracker affixed to vehicles, and that technology isn’t expected to be ready for at least 10 years, Deputy Transportation Secretary Nick Donahue told me.
“There is a great consensus that we need to do something in the short term,” added Valentine.
Arlington County Board Vice-Chair Libby Garvey on Monday urged Valentine to take out a series of op-eds in widely read publications to educate residents on the need for a transportation tax increase. “It’s going to affect them, and we’re going to have to make some tough decisions.”
In the meantime, Valentine said she’s going to advocate for more rail projects to help ease gridlock, to include pushing for a new Long Bridge over the Potomac River that would increase Virginia Railway Express capacity.
Valentine is also scheduled to present the findings of a study of the Interstate 95 corridor in Virginia to the General Assembly when it convenes January 8, 2020.
It found two new lanes could be added in both the north and south directions for 52 miles, expanding the highway from six to eight lanes from Prince William County to Spotsylvania County for $12.5 billion. “And, the day after we complete it, it’s congested,” said Valentine.
